Truth in Taxation

Tax Notices 2017

Notice of Adopted 2017 Tax Rate

The Houston Community College Board of Trustees, in a special meeting on Thursday, October 12, 2017, adopted a tax rate of $0.100263 for tax year 2017. This tax rate is the same as the 2016 tax rate adopted by the Board of Trustees and less than the calculated 2017 Effective Tax Rate of $0.101130.

As shown in the chart below, the adopted tax rate of $0.100263 is the total of the Maintenance and Operations (M & O) tax rate of $0.076652 and the Debt Service tax rate of $0.023611.

 Tax Rate

2017 Adopted Tax Rate

2016 Adopted Tax Rate

Increase
(Decrease)

% Increase
(Decrease)

M & O

$0.076652

$0.075277

$0.001375

1.8%

Debt

$0.023611

$0.024986

$(0.001375)

-5.5%

Total

$0.100263

$0.100263

$0.000000

0.0%

The debt service tax rate is lower than last year’s rate as the principal and interest payments for fiscal year 2017 are lower than the amounts due in fiscal year 2016.  In contrast, the M & O tax rate is slightly higher than last year’s M &O rate.  In compliance with the Chapter 26, Tax Code we are providing notice to the public that THE 2017 M & O TAX RATE ADOPTED WILL RAISE MORE TAXES FOR MAINTENANCE AND OPERATIONS THAN LAST YEAR'S TAX RATE.

THE TAX RATE WILL EFFECTIVELY BE RAISED BY 1.03 PERCENT AND WILL RAISE TAXES FOR MAINTENANCE AND OPERATIONS ON A $100,000 HOME BY APPROXIMATELY $1.37. 

Notice of 2017 Proposed Tax Rate

Houston Community College Notice of 2017 Proposed Tax Rate

The Houston Community College Board of Trustees, on Thursday, September 7, 2017, voted to approve the proposed tax rate of $0.100263 for tax year 2017. The proposed tax rate is the same tax rate as last year’s 2016 tax rate and less than the calculated 2017 Effective Tax Rate of $0.101130. In accordance with Chapter 26 of the property tax code, if the total tax rate proposed does not exceed the calculated Effective Tax Rate for 2017 then no public hearings are required.

The Board of Trustees is scheduled to adopt the tax rate on Thursday, October 12, 2017 at 3:30 p.m. at the HCC Administration Building, 3100 Main Street, 2nd Floor Auditorium.

As shown in the chart below, the proposed tax rate of $0.100263 is the total of the proposed Maintenance and Operations (M & O) tax rate of $0.076652 and the Debt Service tax rate of $0.023611.

 

Tax Rate
2017 Tax Rate
Proposed
2016 Tax Rate
Current
Increase
(Decrease)
% Increase
(Decrease)
M & O $0.076652 $0.075277 $0.001375 1.8%
Debt $0.023611 $0.024986 $(0.001375) -5.5%
Total $0.100263 $0.100263 $0.000000 0.0%

 

Total tax revenues from properties on the tax roll in the preceding tax year will decrease by -0.86 percent (percentage by which proposed tax rate exceeds lower of rollback tax rate or effective tax calculated under Chapter 26, Tax Code). Your individual taxes may decrease at a greater or lesser rate, or even increase, depending on the change in the taxable value of your property in relation to the change in taxable value of all other property and the tax rate that is adopted.


The average taxable value of a residence homestead in Houston Community College last year was $265,776. Based on last year's tax rate of $0.100263 per $100 of taxable value, the amount of taxes imposed last year on the average home was $266.47.

The average taxable value of a residence homestead in Houston Community College this year is $287,832. If the governing body adopts the effective tax rate for this year of $0.101130 per $100 of taxable value, the amount of taxes imposed this year on the average home would be $291.08.


If the governing body adopts the proposed tax rate of $0.100263 per $100 of taxable value, the amount of taxes imposed this year on the average home would be $288.59.


The members of the governing body voted on the proposal to consider the tax increase as follows:

FOR:

Eva Loredo

Carolyn Evans-Shabazz

 

Neeta Sane

Zeph Capo

 

Robert Glaser

John Hansen

 

Adriana Tamez

 

AGAINST:

Dave Wilson

 

PRESENT and not voting:

None

 

ABSENT:

Christopher Oliver

 

Effective and Rollback Tax Rate Calculations

2017 Property Tax Rates in Houston Community College

This notice concerns the 2017 property tax rates for Houston Community College. It presents information about three tax rates. Last year's tax rate is the actual tax rate the taxing unit used to determine property taxes last year. This year's effective tax rate would impose the same total taxes as last year if you compare properties taxed in both years. This year's rollback tax rate is the highest tax rate the taxing unit can set before taxpayers start rollback procedures. In each case these rates are found by dividing the total amount of taxes by the tax base (the total value of taxable property) with adjustments as required by state law. The rates are given per $100 of property value.

Last year's tax rate:  
Last year's operating taxes $149,657,532
Last year's debt taxes $49,674,443
Last year's total taxes $199,331,975
Last year's tax base $198,809,107,048
Last year's total tax rate $0.100263/$100
This year's effective tax rate:
 
Last year's adjusted taxes (after subtracting taxes on lost property) $197,980,939
÷ This year's adjusted tax base (after subtracting value of new property) $195,767,586,722
= This year's effective tax rate $0.101130/$100
(Maximum rate unless unit publishes notices and holds hearings.)  
This year's rollback tax rate:  
Last year's adjusted operating taxes (after subtracting taxes on lost property and adjusting for any transferred function, tax increment financing, state criminal justice mandate, and/or enhanced indigent healthcare expenditures) $148,528,332
÷ This year's adjusted tax base $195,767,586,722
= This year's effective operating rate $0.075870/$100
x 1.08=this year's maximum operating rate $0.081939/$100
+ This year's debt rate $0.023611/$100
= This year's total rollback rate $0.105550/$100

 

Statement of Increase/Decrease

If Houston Community College adopts a 2017 tax rate equal to the effective tax rate of $0.101130 per $100 of value, taxes would increase compared to 2016 taxes by $3,224,486.

Schedule A - Unencumbered Fund Balance
The following estimated balances will be left in the unit's property tax accounts at the end of the fiscal year. These balances are not encumbered by a corresponding debt obligation.

Type of Property Tax Fund Balance
  0



 

Schedule B - 2017 Debt Service

The unit plans to pay the following amounts for long-term debts that are secured by property taxes. These amounts will be paid from property tax revenues (or additional sales tax revenues, if applicable).

Description of Debt Principal or Contract Payment to be Paid from Property Taxes Interest to be Paid from Property Taxes Other Amounts to be Paid Total Payment
Limited Tax Bonds Series 2011  6,455,000 4,078,875 0 10,533,875 
Limited Tax Bonds Series 2013  3,580,000 17,206,519 0 20,786,519 
Limited Tax Bonds Series 2016 0 699,700 0 699,700 
Maintenance Tax Notes Series 2006  615,000 197,066 0 812,066
Maintenance Tax Notes Series 2008  2,610,000  65,250   0 2,675,250 
Maintenance Tax Notes Series 2009  890,000   347,538   0 1,237,538 
Maintenance Tax Notes Series 2010   2,285,000 1,705,775  0 3,990,775  
Maintenance Tax Notes Series 2011  1,655,000   1,636,575  0  3,291,575 
Maintenance Tax Notes Series 2011A  815,000   769,325  0 1,584,325
Maintenance Tax Notes Series 2016    0 1,443,500   0 1,443,500  

 

 

Total required for 2017 debt service 

$47,055,123

- Amount (if any) paid from Schedule A 

$0

- Amount (if any) paid from other resources 

$0 

- Excess collections last year  

$0 

= Total to be paid from taxes in 2017  

$47,055,123 

+ Amount added in anticipation that the unit will collect only 99.50% of its taxes in 2017 

$236,458 
= Total debt levy  $47,291,581 

 

This notice contains a summary of actual effective and rollback tax rates' calculations. You can inspect a copy of the full calculations at 3100 Main Street, 12th Floor, Houston, TX 77002.

Name of person preparing this notice: Teri Zamora
Title: Sr. Vice Chancellor Finance & Administration
Date Prepared: 08/24/2017

Truth in Taxation FAQ

What is the Effective Tax Rate?

The effective tax rate is a calculated rate that would provide the taxing unit with about the same amount of revenue it received in the year before on properties taxed in both years. If property values rise, the effective tax rate will go down and vice versa.

What is the Rollback Tax Rate?

The rollback rate provides the taxing unit with about the same amount of tax revenue from the previous year, plus an extra eight percent increase, in addition to sufficient funds to pay debts in the coming year.

Why must HCC hold two public hearing if the tax rate will not increase?

A taxing unit, other than a water district or small taxing unit which is covered by special provisions, must publish special notices and hold two public hearings before adopting a tax rate that exceeds the lower of the rollback rate or the effective tax rate.